VANCOUVER, British Columbia, Jan. 25, 2023 (GLOBE NEWSWIRE) — MAG Silver Corp. (NYSE:MAG) (“MAG” or the “Company“) announced today that it is has entered into an agreement with a syndicate of underwriters (the “Underwriters“) led by BMO Capital Markets and Raymond James Ltd. under which the Underwriters have agreed to buy on a bought deal basis 2,735,000 common shares (the “Common Shares“) at a price of US$14.65 per Common Share for gross proceeds of approximately US$40 million (the “Public Offering”). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Public Offering, to purchase up to an additional 15% of the Public Offering to cover over-allotments, if any.
The Company concurrently announced that it is undertaking a bought deal private placement of 843,000 common shares to be issued on a flow-through basis under the Income Tax Act (Canada) (the “Flow-Through Shares“) at a price of C$23.75 per Flow-Through Share for aggregate gross proceeds of C$20 million (the “Flow-Through Private Placement“). The Company has granted the Underwriters an option exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the Flow-Through Private Placement, to purchase an additional 15% of the Flow-Through Private Placement to cover over-allotments, if any.
Public Offering
The Common Shares will be offered by way of a short form prospectus in all provinces and territories of Canada, other than Quebec, and will be offered in the United States pursuant to a prospectus filed as part of a registration statement under the Canada/U.S. multi-jurisdictional disclosure system. A registration statement on Form F-10, including the U.S. preliminary prospectus (together with any amendments thereto, the “Registration Statement“), registering the Common Shares under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) has been filed with the United States Securities and Exchange Commission (the “SEC“) but has not yet become effective. The preliminary short form prospectus and Registration Statement are subject to completion and amendment. Such documents contain important information about the Public Offering. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
The net proceeds of the Public Offering will be used to fund exploration on Juanicipio and MAG’s other projects including Deer Trail, certain sustaining and development capital requirements at the Juanicipio Project not included in the initial project capital estimates, and for working capital and general corporate purposes.
The Public Offering is expected to close on or about February 7, 2023 and is subject to the Company receiving all necessary regulatory approvals, including conditional acceptance of the Toronto Stock Exchange and approval by the NYSE American. The completion of the Public Offering is not conditional upon the completion of the …
